Jefferson Smurfit's 33per cent-owned associate in Sweden, Munskjo, has paid £46.5 million (€59 million) for the packaging business of the Norwegian group Rieber & Sons.

The Rieber packaging business is made up of three companies, Norpapp, Dalwell and Gefle Karton & Display, who produce corrugated board packaging and display products in Norway and Sweden and have annual sales of 600 million Norwegian crowns (£47 million). The Rieber companies have 38 per cent of the Norwegian market and 4 per cent of the Swedish market.

Munskjo said that the acquisition is part of its strategy to expand its packaging interests in Scandinavia. "The market position in Scandinavia is strengthening considerably. There are significant common factors between Munskjo and the new operation, in paper production, prepared corrugated packaging and display products. Last year, Munskjo had pre-tax profits of 352 million Swedish crowns (£25.3 million) and analysts are forecasting 358 million crowns (£25.7 million) in the current year followed by 473 million crowns (£34 million) in 2000.